Retail and Distribution

The retail landscape has changed dramatically over the decade.

The inexorable growth of online retailers has changed the competitive landscape beyond recognition. Recent history is littered with examples of previously dominant retail brands that have failed to adapt to the changing market and have fallen victim to convincing online competitors such as Amazon.

Online competitors without the added burden of substantial real estate costs are able to offer highly competitive prices and a vast range of products – which traditional high street competitors are unable to compete with.

On behalf of our retail clients we regularly analyse the cost structure of their overhead positions and help devise a strategy that will stand up in a challenging and competitive market. Any business that hasn’t already considered an appropriate online presence is tempting fate, and it is with a firm eye on the changing landscape that we work alongside management to devise future-proof restructuring plans.

For many retailers, working capital remains tight; therefore, accurate forecasting and strict cash flow management is absolutely crucial. With this in mind we regularly assist clients in renegotiating their existing credit facilities and rent terms. Our experience in this sector enables us to put pressure on large institutional landlords to engage with a far greater sense of urgency by demonstrating clearly the opportunities and consequences of succeeding or failing to negotiate new terms.

Substantial savings can be made by negotiating more favourable leases and we are able to paint a clear and accurate picture of the options available to both retailers and their landlords. Our clients are thereby able to benefit from reduced fixed costs – taking advantage of all available tax and rent refund schemes.

Our expertise covers all sizes of retailers – from the small and medium-sized retailers who are struggling to compete with large out-of-town shopping malls with free parking and longer opening hours, to the larger retailers that have grown through mergers and acquisitions and have inherited the burden of rising overheads and complex organisational structures. For both we are able to provide strategic restructuring advice to reduce costs and boost profitability.